Callaway 2005 Annual Report Download - page 73

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CALLAWAY GOLF COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Year Ended December 31,
2005 2004 2003
Cash flows from operating activities:
Net income (loss) ............................................ $13,284 $(10,103) $ 45,523
Adjustments to reconcile net income (loss) to net cash provided by
operating activities:
Depreciation and amortization .............................. 38,260 51,154 44,496
Loss on disposal of long-lived assets ......................... 4,031 7,669 24,163
Tax benefit (reversal of benefit) from exercise of stock options .... 2,408 2,161 (982)
Noncash compensation .................................... 6,527 1,741 15
Net noncash foreign currency hedging loss .................... — 1,811 2,619
Net loss from sale of marketable securities .................... — — 98
Deferred taxes .......................................... (3,906) 7,707 (8,320)
Changes in assets and liabilities, net of effects from acquisitions:
Accounts receivable, net .................................. 2,296 (1,048) 12,698
Inventories, net .......................................... (65,595) 10,299 4,897
Other assets ............................................ 7,583 1,554 (4,743)
Accounts payable and accrued expenses ...................... 32,740 (16,945) (2,561)
Accrued employee compensation and benefits ................. 5,121 (5,895) (3,898)
Accrued warranty expense ................................. 1,224 (584) (838)
Income taxes receivable and payable ......................... 26,676 (40,711) 4,004
Deferred compensation ................................... (351) (273) 1,572
Net cash provided by operating activities ......................... 70,298 8,537 118,743
Cash flows from investing activities:
Capital expenditures .......................................... (34,259) (25,986) (7,810)
Proceeds from sale of capital assets .............................. 1,363 431 178
Acquisitions, net of cash acquired ............................... — (9,204) (160,321)
Proceeds from sale of marketable securities ....................... — — 24
Net cash used in investing activities ............................. (32,896) (34,759) (167,929)
Cash flows from financing activities:
Issuance of Common Stock .................................... 14,812 20,311 17,994
Acquisition of Treasury Stock .................................. (39) (6,298) (4,755)
Proceeds from (payments on) Line of Credit, net ................... (13,000) 13,000 —
Dividends paid, net ........................................... (19,557) (19,069) (18,536)
Other financing activities ...................................... (44) — (8,117)
Net cash (used in) provided by financing activities .................. (17,828) 7,944 (13,414)
Effect of exchange rate changes on cash and cash equivalents ............. (1,750) 2,595 1,488
Net increase (decrease) in cash and cash equivalents .................... 17,824 (15,683) (61,112)
Cash and cash equivalents at beginning of year ......................... 31,657 47,340 108,452
Cash and cash equivalents at end of year .............................. $49,481 $ 31,657 $ 47,340
Supplemental disclosures (See Note 3 for acquisition-related disclosures):
Cash paid for interest and fees .................................. $ (2,096) $ (1,384) $ (835)
Cash paid for income taxes .................................... $(24,837) $(17,379) $ (30,925)
The accompanying notes are an integral part of these financial statements.
F-5